Stock Analysis

What Kind Of Investors Own Most Of B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3)?

BOVESPA:B3SA3
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Every investor in B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

B3 - Brasil Bolsa Balcão has a market capitalization of R$127b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about B3 - Brasil Bolsa Balcão.

See our latest analysis for B3 - Brasil Bolsa Balcão

ownership-breakdown
BOVESPA:B3SA3 Ownership Breakdown August 21st 2020

What Does The Institutional Ownership Tell Us About B3 - Brasil Bolsa Balcão?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

B3 - Brasil Bolsa Balcão already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at B3 - Brasil Bolsa Balcão's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BOVESPA:B3SA3 Earnings and Revenue Growth August 21st 2020

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in B3 - Brasil Bolsa Balcão. The company's largest shareholder is Capital Research and Management Company, with ownership of 12%. In comparison, the second and third largest shareholders hold about 5.5% and 4.8% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of B3 - Brasil Bolsa Balcão

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public holds a 34% stake in B3 - Brasil Bolsa Balcão. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that B3 - Brasil Bolsa Balcão is showing 1 warning sign in our investment analysis , you should know about...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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